Mesa Telcom Has Three Divisions, Commercial, Retail, and Consumer, That

question 7

Multiple Choice

Mesa Telcom has three divisions, commercial, retail, and consumer, that share the common costs of the company's computer server network. The annual common costs are $2,400,000. You have been provided with the following information for the upcoming year:
$$\begin{array} { | l | r | r | } \hline & \text { Connections } &{ \text { Time on Network (hours) } } \\\hline \text { Commercial } & 60,000 & 120,000 \\\hline \text { Retail } & 80,000 & 150,000 \\\hline \text { Consumer } & 100,000 & 330,000 \\\hline\end{array}$$
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What is the allocation rate for the upcoming year, assuming Mesa Telcom uses the single-rate method and allocates common costs based on the number of connections?

• A) $10.00.
• B) $15.00.
• C) $20.00.
• D) $40.00.

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Definitions:

Confucianism

an ethical and philosophical system based on the teachings of the Chinese philosopher Confucius, emphasizing moral integrity, familial loyalty, and respect for social hierarchies.

Patriarchal

Relating to a social system in which men hold primary power and predominate in roles of political leadership, moral authority, social privilege, and control of property.

Egalitarian Relationship

A partnership where both individuals have equal rights, responsibilities, and opportunities, without any discrimination based on gender, race, or other characteristics.

Middle Eastern Culture

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